As it looks more and more like Congress will enact some sort of Internet sales tax mandate (thereby forcing Internet business to become sales tax collectors for all states), the arguments advanced by Americans for Tax Reform seem logical, and should not be dismissed:

Slippery slope – Opens the door for further government intervention into the Internet and for states to reach across their borders for other taxes.

Too confusing – Small businesses would be forced to accommodate over 9,000 highly variable state and local tax codes and be required to settle disputes with out-of-state revenue boards, potentially in out-of-state courts.

Discourages tax competition – Rather than competing to lower taxes and attract businesses, states will compete to raise taxes on residents of other states.

Expands state tax authority – State governments will be able to tax across their borders despite clear legal and judicial precedent arguing otherwise.

About Jeffrey A. Quinn

The Tax Law Tips blog is written by Jeffrey A. Quinn of Ashley Quinn, CPAs and Consultants, Ltd. (with contributions from Nolo editors). Jeff is a Certified Public Accountant in both Nevada and California, with more than 40 years of experience in providing professional accounting and tax services. Jeff is also a contributor to Nolo's Tax Savvy for Small Business. A member of both the California Society of Certified Public Accountants and the American Institute of Certified Public Accountants, Jeff holds a M.S. in Taxation from Golden Gate University, and a B.S. in Accounting from the University of San Francisco.

Ashley Quinn, CPAs & Consultants, Ltd. is a Nevada-based specialty firm of Certified Public Accountants and Consultants serving individuals, families, and businesses in a multi-state environment.